Blog

The summer months are a good time to consider some ideas that will help cut your tax bill for the current year and minimize future taxes.

Gift Taxable Investments vs. Cash

Are you feeling generous? As you review your investment accounts for winners and losers, consider the optimal type of gifts to give your favorite relatives and/or charities.

Gifts to relatives. Instead of making cash gifts, give your loved ones taxable investments that have appreciated in value. If your relatives are in lower federal tax brackets, they’ll pay lower tax rates than you’d pay if you sold the same shares.

For example, relatives in the 0% federal income t...

A Message From the President, HealthFocus Summer 2019 Steve Leonard, Ph.D., MBA, FACHE, President/CEO Peninsula Regional Health System, Peninsula Regional Medical Center

Nanticoke, McCready and Peninsula Regional: Partners in Health

Steve Rose, President and CEO of Nanticoke Health Services, said it perfectly six months ago, announcing to his Sussex County team about choosing to affiliate with the Peninsula Regional Health System: “We share a similar culture and commitment to community. Combined, our two organizations will create a strong healthcare system for the Delmarva Peninsula.”

Similarly, Kathleen Harrison, CEO of McCready Hea...

(ARA) - How would you react if you were sitting in the back seat, one of your parents were driving, and they became slightly confused when it came time to take an exit? Or if they brushed a curb while driving down the road?

Most people wouldn’t consider either situation alarming, but what if your loved one got lost on the way to the grocery store or some other place they had been to dozens of times before?

It happened to 84-year-old “Mary” of Charlotte, N.C., about two years ago. She was supposed to drive herself to a dentist appointment, but somehow ended up about 10 miles away at a post office. Fortunately, she remembered her home p...

Hello. Bella here. If we haven’t yet been introduced, I’m the Chief Content Contributor for the Procino-Wells & Woodland, LLC quarterly newsletter. Also, and more importantly, four legged queen of the Wells’ home. I just left a spa day with my girlfriend Phoebe and she had the nerve to ask me who her humans should hire to create their estate plan. Like, hello, the Dremel isn’t so loud that you’ve never heard me talk about what my mom does for a living. Ugh. She gets my bandana in such a wad. I’ve told her before. Your human’s estate plan shouldn’t just make arrangements for the house and grandma’s piano. Four legged children need...

Contributed by: Jessica L. Whaley, Legal Assistant

When speaking about estate planning in general terms, most people tend to direct their attention to those documents that plan for after they have departed this life (i.e. a will or trust). However, when we prepare an estate plan for our clients, we not only want to prepare documents to assist in the administration of their estate, but also to aid in the years of life ahead. This is where a Power of Attorney (“POA”) becomes a useful document when it is drafted correctly. As we will discuss below, without the proper powers assigned within the document, a POA can be a source of grief for tho...

Contributed by: Michele Procino-Wells, Esquire

As more “baby boomers” are retiring and rolling over large 401(k)s and other retirement plans to Individual Retirement Accounts (IRAs), proper tax and estate planning for IRAs has become increasingly important.

Upon your death, the beneficiary of your IRA can take the money out as fast as all of it right away, or as slow as payments over the beneficiary’s life expectancy. If the beneficiary is taking the money out as slowly as possible, the amount she or he has to take out every year is known as the required minimum distribution (RMD). Taking the money out as slowly as possible is known...

The Basics

Q: What is a "Maryland crab feast"? A: Crab feasts are a time honored tradition during which friends and family gather around a large picnic-style table to eat Maryland blue crabs. Blue crabs take time to pick and eat so it becomes a very social activity. Typically held in the summer, crab feasts are best enjoyed with a cold beer in hand.

Q: When is Maryland crab season? A: The Maryland crab season typically starts in mid April and runs all the way through December.

Q: What is the difference between male and female crabs? A: Male crabs are generally larger & meatier than females. Females have sweeter meat and may contain...

Every day our office meets with families who want to prepare for the future whether that’s through estate planning or asset protection from long term care costs. When we talk to Veterans it is almost always unclear to them the benefits that could be available through the Veterans Aid and Attendance Pension Benefits program. Veterans or widow(er)s of veterans may be entitled to a non-service connected monthly pension to offset long term health care costs such as home health care, or care in assisted living or nursing facilities. Many veterans are unaware of this benefit or assume they don’t qualify because they didn’t retire from the milit...

Contributed by: Gary & Amy Feger of CarePatrol of Delaware & Maryland Eastern Shore

Many older adults, especially those with health issues, are lonely. According to a new study, one in four seniors say they feel isolated from other people at least some of the time, and one in three say they lack regular companionship.

Chronic loneliness doesn’t just affect older adults’ mental health. According to the study, it can also impact a person’s memory, physical well-being and life expectancy.

“In fact, some research suggests that chronic loneliness may shorten life expectancy even more than being overweight or sedentary, and just as much as...

My grandmother had a wooden cookie jar that lived on the back of her kitchen counter the majority of my life. Her grandchildren have always been able to count on that cookie jar to be full of something delicious. Although there have been times that we've found Little Debbie treats, it's always been much more common for us to find homemade cookies that our grandmother baked for us in anticipation of a visit.

There are so many forms of love and I believe baking is one of them. In our offices we find happiness in preparing freshly baked cookies that we can offer during our client meetings and hope that our token translates as an...

We help families protect their assets from the costs of long term care. Often times, however, we are not working with our elderly client directly, but rather with his/her Agent under a Power of Attorney (POA). Unfortunately, we regularly see POAs that do not grant the Agent full authority because items in the General Authority and Specific Authority sections have not been initialed. This has been especially problematic since the Powers of Attorney Act was passed in 2010. As a result, the Agent does not have the authority to make gifts or create irrevocable trusts, which are both commonly necessary to complete asset protection planning....

Contributed by: Tony DiPietro, State Farm Insurance Agent

What is Life Insurance?

Life insurance is a contract established during your lifetime where an amount of money (called the “death benefit”) is paid to a beneficiary (the person(s) or entity you choose to receive the money) at your death, in exchange for a premium that you pay to the insurance company during your lifetime. However, there are various types of life insurance products available, all designed to serve a particular purpose. An insurance professional can help you understand your options and make the best selection for you and your loved ones.

How can Life Insurance S...

*Contributed by Marie T. Chin, Estate Planning Coordinator

“Every patient is someone’s most important person”. This was the quote on my desk calendar that I saw every day for the entire month of July. At Procino-Wells & Woodland, I am so proud to be a part of a team that sees each client as “someone’s most important person”. When someone comes into our office, they are typically dealing with preparing for death or with the recent loss of a loved one. These are incredibly difficult conversations to have and I am grateful to be part of a team that not only acknowledges this but is there through the entire process. From supplying freshly bake...

Jeffrey D. Montgomery is the founder and president of Montgomery Financial Services LLC (www.mfswealth.com). He works primarily with pre-retirees, retirees and affluent small-business owners, helping them grow, protect and distribute their financial assets.

The stock market is an amazing thing, with so many moving parts that it's impossible to predict. So don't even try to determine what it's going to do next, and don't believe people who say they can. Here's what to do instead.

Hardly a day goes by without some self-proclaimed expert making lofty, and sometimes outrageous, predictions in the media about where the markets are heading and...

A basic estate plan usually includes a Last Will and Testament, a Durable Power of Attorney and an Advanced Healthcare Directive. Often at the initial consultation, we review a client’s previous estate plan and many times find that they have named only one person as agent and/or executor. This could potentially cause challenges - what if that person becomes incapacitated or passes away before you? What if your agent goes on a long trip and during that time you have a significant health emergency and need that person to act on your behalf? Also, we often find that two people are listed together, but without independent authority to act. T...

Contributed by Tiffany Rubin, Chief Happiness Officer, Nurse Next Door Delaware, https://www.nursenextdoor.com/blog/welcome-to-nurse-next-door-delaware/

Palliative Care and Hospice often get confused with each other, and they also often come with negative connotations. We break down what you need to know, and help you figure out how to use each service to the fullest.

4 Main Differences at a Glance Prognosis: Palliative care does not have a particular prognosis. Hospice requires a prognosis of less than 6 months to live.

Qualifying for Care: Palliative care requires a serious illness, acute or chronic, as determined by your...

For many people there is a general misunderstanding regarding the two programs: Medicare and Medicaid.

Medicare is a nationwide, age based, governmental health insurance program funded by the Social Security Administration. Most of us, as taxpayers, will contribute to this fund while we are working. There is also a monthly premium that is paid for the level of insurance you choose to enroll in. You become eligible for the benefit when you turn 65, so it is an age based program. Some people with certain disabilities may be eligible for the health insurance before they turn 65.

There are different levels of Medicare. The most common...

Many of you are probably familiar with the actor Luke Perry. Maybe you know him from his days playing Dylan on the popular 1990’s TV drama 90210 or possibly from his more recent role as Frank Andrews on the hit show Riverdale. On May 4th, Perry unexpectedly passed away at the age of 52 due to complications from a stroke he suffered a week prior. In departing this life far too early, Perry shows us all why estate planning is important at any stage of life.

From what details have been gathered regarding Perry’s Estate Planning, it appears that his plan contained many of the documents we regularly recommend to our clients. First, it is li...

What is a Guardian? A Guardian is a Court appointed person authorized to make legal, medical and financial decisions for a disabled person.

Why would I need to pursue a Guardianship? Guardianship is necessary when an individual becomes incapacitated and there is not a legal Medical and/or Durable Power of Attorney in place that would allow someone to act and make decisions on an individual’s behalf and in their best interest. Typically, a relative or friend to the disabled person Petitions the Court of Chancery in Delaware, or the Circuit Court in Maryland, and requests permission to serve as the Guardian. The disabilities that require t...

“Historically, the purpose of a power of attorney is to select an agent (and ideally, successor agents) to act, in case you need assistance.”

Naming a trusted individual, whether a family member or a friend, to be your power of attorney is a significant decision. That person has the power to make financial decisions on your behalf, when you are unable to do so. It is, therefore, a serious responsibility, says My San Antonio Life in the article “Substitution of Agent and Delegation of Authority.”{: target="_blank"}

Here’s an example of what can go wrong. A man’s father signed a durable power of attorney a decade ago, naming his son ...

“You have reviewed multiple drafts of your Will, Trust, Living Will and Financial Power of Attorney, attended multiple meetings with your attorney, discussed the final distribution of your assets, selected your Executor and Trustee and finally executed your estate planning documents. So, you must be done, right?”

Putting your estate plan in place is a big first step in the process. However, it is only the first step for many people, according to this article “So You Think You’re Done with Your Estate Plan…”{: target="_blank"} from the National Law Review. Here’s an excellent checklist of items that are commonly overlooked and t...

“In March 2018, the U.S. Census Bureau reported that by 2030, all baby boomers will be over the age of 65, leading to a unique situation in demographics: 20% of U.S. residents will be at retirement age.”

Part of the increase in the number of people who live long enough to be of retirement age, is because life expectancies have increased. The average U.S. life expectancy has increased from 68 years in 1950 to 79 years in 2013, according to the Population Reference Bureau cited in an article from U.S. News & World Report titled “How Should I Finance Assisted Living?”{: target="_blank"}

The combination of increasing life expectancies ...

“Many of us have experienced the unexpected "telephone call" from a hospital or loved one that a sudden negative medical event has occurred, involving a member of your family.”

It’s never a good thing, when you get a call and the person on the other end asks if you are sitting down.

A sudden death or medical crisis can turn your world upside down, especially if the person was not prepared with the right documents says The Union in the article “Estate planning in a time of crisis.”{: target="_blank"} Your heart sinks and questions start flooding your mind. Will they survive? How far is the hospital and how fast can you get there? ...

“Though retirement can be a fulfilling time in people's lives, it can also be a stressful one. This especially holds true, if you fall victim to the following mistakes, so be sure to avoid them at all costs.”

Most people spend their entire working lives dreaming of retirement. However, when they get there, it’s a new and strange world without fixed schedules or routines. If you make any of these mistakes, reports The Motley Fool in the article “4 Retirement Planning Mistakes You Probably Don’t Even Realize You’re Making,”{: target="_blank"} you might be surprised to find yourself working again!

Relying heavily on Social Secu...

“Although we typically associate the term “estate” with the ultra-wealthy, estate planning is not just for the rich. Everyone, regardless of family dynamics or financial status, can benefit from having an estate plan—a collection of documents that specify how you want your assets distributed.”

Estate planning has a purpose while you are alive, with medical directives and powers of attorney, as well as when you have passed. That is something most people don’t understand. As described in a recent article in Forbes, “6 Reasons Why You Need an Estate Plan,”{: target="_blank"} most people continue to neglect to put a plan in pla...